A 5-year lease agreement for a motor vehicle is entered into on 1 July 2018. The contract requires annual lease payments of $15,000 payable at the start of each year including annual maintenance costs of $1,000. The first lease payment of $15,000 is payable on 1 July 2018. The contract also includes a bargain purchase option providing the lessee the right to purchase the leased asset at the time of the last lease payment for $10,000.

Calculate the present value of the lease liability using an implied interest rate of 5%p.a.

**Please show ALL working out